Can the UK alone deliver its “Green Industrial Revolution” by 2030?
The UK has announced by 10 Downing Street its post-Brexit “Green industrial revolution” plan for the next 10 years [1] in 10 key points. The flagship of the 2030 targets can be summarised into:
- Wind energy to powering homes
- Hydrogen for industry, transport, power and homes
- Electric vehicles only
- Emerging zero-emission planes and ships technologies
- London becoming the global centre of green finance
How much of the 2030 ”Green industrial revolution” is new?
Between April and June 2020, the UK energy production was 67.5 TWh with 44.6% relying on renewables which produced 30.1 TWh, breaking down to an offshore wind increase to 7.8 TWh and onshore wind generation of 6.1 TWh [2]. The UK government aims to subsidise onshore renewable energy projects by the end of 2021 to produce an extra 12GW from combined renewable energy technologies, enough power to charge up to 20 million electric vehicles a year [3].
However, according to critics, only 29 p for every £1 of capital expenditure on offshore wind farms will go back to the UK economy [4].
Hydrogen, on the other hand, will be produced as now from methane reforming and biomass gasification combined with carbon capture, usage and storage and transport and storage, leading to “low carbon hydrogen” [5]. ITM Power will deliver a 10 MW electrolyser for the first green hydrogen plant in Scotland to be operated by BOC and, using wind and solar power produced by ScottishPower Renewables [6]. Carbon capture facilities in the UK gain momentum with many oil companies leading the way. Electricity companies follow with the recent planning by the largest power plant in the UK to create by 2024 carbon dioxide storage in the Southern North Sea [7].
Nuclear power is not new to the UK, as it has 15 operational nuclear reactors at seven locations [8].
While Rolls- Royce plans to build and operate 16 mini nuclear power plants [9], EDF makes a 3GW plant [10] and is currently in talks with the government for an additional nuclear plant [11].
Electric vehicles use has a long history in the UK starting with purchase incentives in 2009, the plug-in car programme in 2011 and plug-in van grants in 2012, but the recent “no diesel/ petrol cars to be sold after 2030” is new.
The zero-emissions technology in ships setting off from 2025 dates back to 2019 with the government considering to “incentivise the transition to zero-emission shipping” [12].
Ships’ powering technologies could be based on batteries or biofuels with a fossil fuel alternative as a backup. The Jet Zero Council launched in July 2020 to help with the transition of the aviation industry to zero- emissions [13]. Airbus announced that three different aircrafts running exclusively with hydrogen could fly by 2035 [14].
Since 2016, London bankers pioneer in green finance by being the first to find such a niche in the market [15]. Green finance links private financial flows with sustainable and resilient growth. According to the 2020 Global Green Finance Index (GGFI), London lost its crown of green finance to Amsterdam and Zurich [16].
Only the future will tell if a coherent, coordinated and well-orchestrated planning, linking all 10 key points will deliver the “Green Industrial Revolution”.
Such an ambitious task cannot be solely based on the business and financial sectors’ interests.
The opinions expressed in the article are those of the author and not linked or communicated to the interests of any specific stakeholder or sector or organisation.
List of references
[1] Gov.co.uk. 2020. ‘PM outlines his Ten Point Plan for a Green Industrial Revolution for 250,000 jobs’. 18 November. Available at: https://www.gov.uk/government/news/pm-outlines-his-ten-point-plan-for-a-green-industrial-revolution-for-250000-jobs (Accessed: 26 November 2020)
[2] Gov.co.uk. 2020. ‘Energy Trends: UK renewables’. 12 November. Available at: https://www.gov.uk/government/statistics/energy-trends-section-6-renewables (Accessed: 26 November 2020)
[3] Jillian Ambrose . 2020. ‘UK government to subsidise onshore renewable energy projects’. The Guardian. 24 November. Available at: https://www.theguardian.com/environment/2020/nov/24/uk-government-to-subsidise-onshore-renewable-energy-projects (Accessed: 24 November 2020)
[4] Nathalie Thomas. 2020. ‘UK auction plan aims to double renewable energy capacity’. Financial Times. 24 November. Available at: https://www.ft.com/content/26d70b40-b8d7-462a-8ca9-e84d3c436982 (Accessed: 26 November 2020)
[5] Gov.co.uk. 2020. ‘Business models for low carbon hydrogen production’. 17 August. Available at: https://www.gov.uk/government/publications/business-models-for-low-carbon-hydrogen-production (Accessed: 26 November 2020)
[6] ITM Power. 2020. ‘‘Green Hydrogen for Scotland’ to help reach net zero targets: First project to deliver a 10MW electrolyser to Glasgow facility’. 16 September. Available at: https://www.itm-power.com/news/first-project-to-deliver-a-10mw-electrolyser-to-glasgow-facility (Accessed: 26 November 2020)
[7] BBC News. 2020. ‘Humber carbon capture scheme ‘may create 49,000 jobs’’. 18 November. Available at: https://www.bbc.com/news/uk-england-humber-54986043 (Accessed: 26 November 2020)
[8] Jo Harper. 2020. ‘UK nuclear power: The next Huawei?’. DW. 21 August. Available at: https://www.dw.com/en/uk-nuclear-power-the-next-huawei/a-54631808 (Accessed: 26 November 2020)
[9] Justin Rowlatt. ‘Rolls-Royce plans 16 mini-nuclear plants for UK’. 2020. BBC News. 11 November. Available at: https://www.bbc.com/news/science-environment-54703204 (Accessed: 26 November 2020)
[10] EDF. 2020. ‘A new generation of nuclear power stations’. Available at: https://www.edfenergy.com/about/nuclear/future-of-nuclear-power (Accessed: 26 November 2020)
[11] Simon Jack. 2020. ‘New nuclear plant at Sizewell set for green light’. BBC News. 30 October. Available at: https://www.bbc.com/news/business-54754016 (Accessed: 26 November 2020)
[12] EURACTIV.com with Reuters. 2019. ‘UK to order ships with zero emission technology from 2025’. 12 July. Available at: https://www.euractiv.com/section/shipping/news/uk-to-order-ships-with-zero-emission-technology-from-2025/ (Accessed: 26 November 2020)
[13] Gov.co.uk. 2020. ‘Prepare for lift-off: Jet Zero Council to deliver carbon-free flight’. 25 September. Available at: https://www.gov.uk/government/news/prepare-for-lift-off-jet-zero-council-to-deliver-carbon-free-flight (Accessed: 26 November 2020)
[14] Jillian Ambrose. 2020. ‘Airbus reveals plans for zero-emission aircraft fuelled by hydrogen’. The Guardian. 21 September. Available at: https://www.theguardian.com/business/2020/sep/21/airbus-reveals-plans-zero-emission-aircraft-fuelled-hydrogen (Accessed: 26 November 2020)
[15] Treasurers.org. 2016. ‘City of London launches long-awaited green finance scheme’. Available at: https://www.treasurers.org/hub/treasurer-magazine/city-london-launches-long-awaited-green-finance-scheme (Accessed: 26 November 2020)
[16] Poppy Wood. 2020. ‘London loses crown as global green finance leader’. City A.M. 27 October. Available at: https://www.cityam.com/london-loses-crown-as-global-green-finance-leader/ (accessed: 26 November 2020)
